Financial Accounting and Reporting 1

Tutorial 4
Oxford (Page 313)
Chap 9: Question 1,2,3&4
1) Delima Ltd
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2015
RM’000 RM’000 RM’000
Revenue (W1) 4,421
Less: Cost Of Goods Sold (W1) (2,130)
Gross Profit 2,291
Deposit Interest Received 35
2,326
Expense
Distribution Expense (340 + 60)
60 = ( 20% from 300, Motor vehicle) (400)
Administration Expense (W2) (610)
Financial expense (60 +10 +10)
10 = (8% from 250 for half year
10 = (debenture interest) (80)
Net Profit before Tax 1,236
Tax 50% (50% from 1,236) (618)
Net Profit after Tax 618

Delima Ltd
Statement of Financial Position
As at 31 December 2015
RM’000 RM’000
Assets
Non-Current Asset
Plant, Property and Equipment (W3) 3,900
Current Asset
Inventory (220 + 70) 290
Receivables 169
Total Assets 4,359
Equity and Liability
Share Capital 2,200
Share Premium 180
General Reserves 260
Retained Earnings (W4) 516
Total Equity 3,156
Liabilities
 Non-Current Liability
8% Debenture 250
Current Liability
Accrual Tax 618
Accrued Debenture 10
Payables 95
Bank Overdraft (120 +110)
110 = RM 0.05 from 2,200 230
Total Liabilities 1,203
Total Liabilities and Equity 4,359

W1 Sales and COGS

RM’000 RM’000 RM’000
Sales Revenue 4,500
Less: Return Inwards/ Sales Return (79)
Net Sales 4,421
Less: Cost Of Goods Sold
Opening Inventory 180
Purchases 2,400
Less: Return Outwards/Purchase (160) 2,240
Return
2,420
Less: Closing Inventory (220 +70) (290) (2,130)
Gross Profit 2,291

W2 Administrative Expense

RM’000 RM’000 RM’000

Administrative expense 450
Depreciation
Leasehold premise (3,900 × 2%) 78
Plant and machinery (840 × 10%) 84 162
Total 612

W3 Plant, Property and Equipment

RM’000 RM’000
Plant, Property and Equipment
Non-current asset
Lease premise 3,900
Less: Accumulated Depreciation (500 +78) (578) 3,322
Plant and machinery 820
Less: Accumulated Depreciation (320 +82) (402) 418
Motor vehicles 300
Less: Accumulated Depreciation (80 +60) (140) 160
Total 3,900
W4 Retained Earnings
RM’000 RM’000
Opening Retained Earnings 74
Current Retained Earnings 618
Less: Interim Dividend (66)
Less: Final Year Dividend (2,200 × 0.05) (110)
Total 516

2) Susan Ltd
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 June 2015
RM’000 RM’000 RM’000
Reserves W1 53,761
Less: Cost Of Goods Sold W1 (33,335)
Gross Profit W1 20,426
Deposit Interest -
Expense
Distribution expense (6,654)
Administrative expense W2 (4,120)
Financial expense ( 7% from 16,000) (1,120)
Profit before tax 8,532
Less: Taxation (1,254)
Profit after taxation 7,278

Susan Ltd
Statement of Financial Position
As at 31 June 2015
RM’000 RM’000
Assets
Non-Current Asset
Plant, Property and Equipment W3 30,516
Current Asset
Bank 1,184
Prepaid Insurance (48 - 16)
16 = 4 months × 4k 32
Inventory 9,786
Receivables (6,690 + 3,564)
3,564 = Credit Sales 10,254
Total Current Asset 21,256
Total Assets 51,772
Liabilities and Equity
Share Capital (12,000 × 1) 12,000
Retained Earnings W4 18,323
 Total Equity 30,323
Non-Current Liability
7% bank loan repayable 16,000
Total Non-Current Liability 16,000
Current Liability
Accrued (387 +560) 947
50% Taxation 1,254
Payable 3,475
Total Current Liability 5,676
Total Liability 21676
Total Liability and Equity 51,772

W1 Sales and COGS

RM’000 RM’000 RM’000
Sales Reserves (50,875 + 3,564) 54,439
Less: Return Inwards (678)
Net Sales 53,761
Less: Cost Of Goods Sold
Opening Inventory 8,456
Purchase 35,245
Less: Return Outwards (453 + 127) (580) 34,665
43,121
Less: Closing Inventory (9,786) (33,335)
Gross Profit 20,426

W2 Administrative Expense
RM’000 RM’000 RM’000
Administrative Expense 4,152
Insurance Expense ( 48/12 ×8) 32
Total 4,120

W3 Plant, Property and Equipment

RM’000 RM’000
Plant, Property and Equipment 58,463
Less: Accumulated Depreciation (27,947)
Total 30,516
W4 Retained Earnings

RM’000 RM’000
Beginning Retained Earning 12,345
Current Retained Earnings 7,278
Less: Interim Dividend (700)
Less: Final Dividend (600)
Total 18,323
Question 3
Julie’s Collection
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31st March 2015
RM RM RM
Revenue 742,400
Less: COGS (497,400)
Gross Profit 245,000
Deposit interest (180)
244,820
Expense
Distribution expense
Freight out (16,700)
Administrative expense (227,900)
Financial expense
Interest on notes payable (4,000)
Profit before tax (3,780)
Less: Taxation 0
Profit after tax (3,780)
Julie’s Collection
Statement of Financial Position
As at 31st March 2015
RM RM
Assets
Non-Current Assets
Plant, Property and Equipment 96,700
Current Asset
Cash 8,700
Trade Receivables 27,700
Inventories 44,520
Supplies 2,100
Total Asset 179,720
Liability and Equity
Share Capital 50,000
Retained Earnings 26,220
Total Equity 76,220
Non-Current Liability
Notes Payables 51,000
Current Liability
Accounts Payable 48,500
Accrued Expense 4,000
Total Liability 103,500
Total Equity and Liability 179,720
W1 Sales and COGS
RM
Sales Revenue 755,200
Less: Return Inwards (12,800)
Net Sales 742,400
Less: COGS (497,400)
Gross Profit 245,000

W2 Administrative expense
RM
Administrative expense
Maintenance and repair expense 12,100
Salaries and wages expense 136,000
Advertising expense 24,400
Rent expense 24,000
Utilities expense 14,000
Supplies expense (6,200 – 2,100) 4,100
Depreciation of equipment
(133,000 × 10%) 13,300
Total 227,900

W3 Plant, Property and Equipment

RM
Plant, Property and Equipment
Equipment 133,000
Less: Accumulated Depreciation
(13,300 + 23,000) (36,300)
Total 967,000

W4 Retained Earnings
RM
Beginning Retained Earnings 38,000
Current Retained Earnings (3,780)
Less: Final Dividend (8,000)
Total 26,220
Question 4
My Groceries Store
 Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2015
RM RM RM
Revenue 717,000
Less: COGS (412,700)
Gross Profit 304,300
Interest Revenue 4,000
308,300
Expense
Distribution expense -
Administrative expense (158,200)
Financial expenses
Interest paid
(3,000 + 5,600) (8,600)
Other expense
Prepaid Insurance (4,800)
Profit before tax 136,700
Taxation -
Profit after tax 136,700

My Groceries Store
Statement of Financial Position
As at 31 December 2015
RM RM
Assets
Non-Current Asset
Plant, Property and Equipment 304,600
Current Asset
Trade Receivable 50,300
Cash 23,800
Prepaid Insurance (9,600 – 4,800) 4,800
Inventory 75,000
Total Asset 458,500
Equity and Liability
Share Capital 112,000
Retained Earnings 177,300
Total Equity 289,300
Non-Current Liability
Mortgage Payable 80,000
Current Liability
Trade payable 79,300
Accrued (5,600 + 4,300) 9,900
Total Liability 169,200
Total Equity and Liability 458,500
W1 Sales and COGS
RM
Revenue 724,000
Credit Sales 1,000
Less: Sales Return (8,000)
Net Sales 717,000
Less: COGS (412,700)
Gross Profit 304,300

W2 Administrative Expense
RM
Administrative Expense
Salaries and Wages expense 108,000
Sales Commission expense
(10,200 + 4,300) 14,500
Utilities expense
(11,000 + 1,000) 12,000
Depreciation
Buildings 10,400
Equipment 13,300
Total 158,200

W3 Plant, Property and Equipment

RM
Plant, Property and Equipment
Buildings 290,000
Less: Accumulated Depreciation
(42,100 + 10,400) (52,500)
Equipment 110,000
Less: Accumulated Depreciation
(29,600 + 13,300) (42,900)
Total 304,600
W4 Retained Earnings
RM
Beginning Retained Earnings 64,600
Current Retained Earnings 136,700
Less: Dividend (24,000)
Total 177,300